Terror to hurt FDI in Southeast Asia

Terror to hurt FDI in Southeast Asia

NEW DELHI, India : Malaysian Prime Minister Mahathir Mohamad said Friday the recent terrorist attacks in Indonesia and the Philippines would hurt foreign investment in Southeast Asia, which was already facing strong competition from China.

"We would have to depend on our domestic growth," Mahathir told reporters at the end of his two-day visit to India.

He said he was confident, however, that the Malaysian economy would not be greatly affected by the terrorist threats.

"Malaysia has a reputation for being able to handle its terrorist problems for a long, long time ... I think time will show that Malaysia is safe and stable," Mahathir said.

Mahathir said China has become a strong competitor to Southeast Asian countries since its entry into the World Trade Organization. "It is able to produce high quality products at low prices," he said.

But there are many products that Southeast Asian nations can sell to China's 1.3 billion people, he said, listing palm oil, sophisticated electronics and information technology software. --AP